A son acquired a property through a mortgage, but in reality it has been his father who has been paying the mortgage instalments. The father now wishes to have the property transferred into his name, although there is still an outstanding mortgage and the father does not have sufficient financial means to take on the mortgage.
What can be done in this case?
It is possible to register the property in the father’s name even if there is an outstanding mortgage:
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A sale with mortgage subrogation may be carried out, in which case the father would assume the position of the mortgage debtor.
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Another option is a sale with a deferred price, whereby the outstanding mortgage amount can be treated as part of the deferred purchase price. The seller would remain liable to the bank until the mortgage is fully repaid.
